Source MyMinfin
Tax Treatment Overview: The circular clarifies the tax implications for employers reimbursing employees’ electricity costs incurred while charging company cars at home, distinguishing between the provision of electricity and reimbursement of costs.
Reimbursement Conditions: Reimbursements related to professional travel are non-taxable if they cover actual expenses, while reimbursements for commuting or personal use are considered taxable benefits, with specific exemptions and limits outlined for employees.
Support for Electric Vehicle Charging: To promote green vehicles, employers can provide a home charging station and reimburse electricity costs under certain conditions, treating this as a single non-taxable benefit if managed correctly.
Measurement and Communication Requirements: Employers must use a charging system that communicates electricity usage to ensure reimbursements are accurate, with compliance to specified measurement standards required for future reimbursements starting in 2025.
Implementation Timeline: The circular outlines that the provisions for using a maximum fixed amount for reimbursement calculations will apply from January 1, 2025, to December 31, 2025, with flexibility for prior reimbursements assessed on a good faith basis.
